(Bloomberg) -- Asian stocks and currencies look set to respond positively to the Federal Reserve’s policy decision where the central bank maintained its outlook for three interest-rate cuts this year, according to analysts and strategists.

Regional markets are likely to see a relief rally after they had come under pressure in recent weeks due to concern inflation was proving hard to get under control, they said. Some of the bigger potential beneficiaries in Asia may be technology and cyclical stocks, and currencies such as the Australian dollar and South Korean won.

Here’s what analysts and strategists had to say: 

Hebe Chen, an analyst at IG Markets in Melbourne

“Asian markets are likely to see a wave of relief rally as traders gain confidence from a clearer view of the near-term picture. This enhanced sense of certainty is likely to be particularly appreciated by the Japanese market, which is still navigating the aftermath of its historic moment.”

Brendan McKenna, emerging-market economist and FX strategist at Wells Fargo in New York

“I would expect the EM FX rally to carry into Asia. The FOMC not adjusting the dot plot all that significantly, and still signaling three cuts, should pave the way for broad-based EM Asia FX strength and risk on sentiment when markets open.”

“High-beta EM currencies can outperform today. So in that sense the Korean won, Philippine peso, Indonesian rupiah and to a slightly lesser extent Thai baht are likely to experience the most upside following the Fed policy decision.”

Bob Savage, head of markets strategy and insights at BNY Mellon in New York

“You should continue to see equity interest in Asia Pacific.”

“I would be nervous about being too short Taiwan today because of that story as well because equity movements drive some of that currency appreciation, but the rate differentials are going to be narrowing for places like Indonesia and India.”

“I definitely feel that this session is going to be dollar negative, emerging market Asia positive, but with some caveats that it’s going to require some bond buying or equity buying to sustain. And I’m a little bit nervous about other rate decisions into Europe, so I might close those positions out. If I get the win at the beginning, I might, you know, call it a day at the end into Europe.”

Matthew Haupt, a portfolio manager at Wilson Asset Management in Sydney

In Asia, “market reaction will be positive given the falling US dollar and shorter-term rates. We experienced a bull steepener, and will want to see a few more days to lock this in as a trend. Likely to see broad rallies across sectors with sighs of relief across ex US markets given the dovish Fed stance.”

Chamath De Silva, senior fund manager at BetaShares Holdings in Sydney

The Fed outcome was “pretty dovish overall, risk assets liked it and should help Asian equities today. US equity performance was led by tech and cyclicals, and I expect the same today in Asia.”

“The Australian dollar is the big beneficiary. In terms of specific equity markets, probably Korea should get a bid amid ongoing strength in tech and semis.”

Martin Whetton, head of markets strategy at Westpac Banking Corp. in Sydney

“The FOMC meeting has given some implied view of the path of cash rates to be not as minimal as had been in pricing in recent days. This fits with the views published here in recent weeks that the USD OIS curve had gone too far, and leaning against that would be prudent.”

“In Australian dollar funding, FX/OIS basis has continued to move higher in the one- and three-month tenors and the short tenor basis curve has been pushing higher, which has flattened the 2s/5s curve. Australian dollar one-month implied yields are still relatively high, but that is likely to shift slightly lower in coming days.”

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